My grandmother passed away last year and I am trustee for both her living trust and the third-party testamentary special needs trust (established within that living trust) that all assets are going to pass to for my disabled mother (the SNT beneficiary and a recipient of SSI and Medicaid). Over the course of more than a year I've done a TON of research (several books, an SNT practice guide from LexisNexis, numerous websites, newsletters, podcasts, etc) and there are two questions I still haven't found definitive answers to:
1) Can a third-party SNT that is not considered a resource of the beneficiary by SSI hold title to multiple houses, none of which the beneficiary is living in, without affecting the beneficiary's SSI?
2) If a third-party SNT that is not considered a resource of the beneficiary by SSI holds title to multiple houses, none of which the beneficiary is living in, are administrative expenses like utilities and property taxes at those houses still considered to be "shelter" expenses for SSI purposes even though none of the houses are the beneficiary's primary residence?
The background is that my grandmother's living trust currently holds title to two houses, but my mother (the disabled beneficiary) doesn't live in either (she lives in an apartment and receives Section 8 assistance). I'm trying to find clarification on the above two questions because I don't want to cause issues with my mother's SSI when title of both houses is transferred from the living trust to the third-party SNT.
Although common sense would dictate that all assets owned by the third-party SNT (which is not considered a resource to my mother for SSI purposes) are also not resources to my mother for SSI purposes, I also know that a beneficiary living in a house owned by (titled to) an SNT would be considered by SSA to be living in his or her own home based on having an "equitable ownership under a trust." Although neither house in this instance is being used as the primary residence of my mother (the beneficiary), the fact that "equitable ownership" could potentially factor in and the fact that SSA seems to treat a home slightly different than other assets (e.g. beneficiary can hold title to one house, but only if it's their primary residence) makes me a little nervous...
I've read through the entirety of the Income and Resources sections of the SSA POMS (including all the Trust content in SI 01120) and still haven't been able to find a definitive answer to those two questions above. The closest information I've found is section (F)(1) of SI 01120.200 (emphasis added is mine):
"If the trustee of a trust which is not a resource for SSI purposes purchases and holds title to a house as a home for the beneficiary, the house would not be a resource to the beneficiary. It would also not be a resource if the beneficiary moved from the house. The trust holds legal title to the house, therefore, the eligible individual would be considered to be living in his or her own home based on having an "equitable ownership under a trust.""
While the above certainly seems to indicate that a house owned by (titled to) a third-party SNT (which is not a resource to the beneficiary) is not a resource to the beneficiary even if they have moved from that house, it doesn't make it clear if the same applies for multiple houses held by the SNT (none of which are the primary residence of the beneficiary).
ANY insight whatsoever that any of you could provide on those two questions would be GREATLY appreciated!
Thanks!
1) Can a third-party SNT that is not considered a resource of the beneficiary by SSI hold title to multiple houses, none of which the beneficiary is living in, without affecting the beneficiary's SSI?
2) If a third-party SNT that is not considered a resource of the beneficiary by SSI holds title to multiple houses, none of which the beneficiary is living in, are administrative expenses like utilities and property taxes at those houses still considered to be "shelter" expenses for SSI purposes even though none of the houses are the beneficiary's primary residence?
The background is that my grandmother's living trust currently holds title to two houses, but my mother (the disabled beneficiary) doesn't live in either (she lives in an apartment and receives Section 8 assistance). I'm trying to find clarification on the above two questions because I don't want to cause issues with my mother's SSI when title of both houses is transferred from the living trust to the third-party SNT.
Although common sense would dictate that all assets owned by the third-party SNT (which is not considered a resource to my mother for SSI purposes) are also not resources to my mother for SSI purposes, I also know that a beneficiary living in a house owned by (titled to) an SNT would be considered by SSA to be living in his or her own home based on having an "equitable ownership under a trust." Although neither house in this instance is being used as the primary residence of my mother (the beneficiary), the fact that "equitable ownership" could potentially factor in and the fact that SSA seems to treat a home slightly different than other assets (e.g. beneficiary can hold title to one house, but only if it's their primary residence) makes me a little nervous...
I've read through the entirety of the Income and Resources sections of the SSA POMS (including all the Trust content in SI 01120) and still haven't been able to find a definitive answer to those two questions above. The closest information I've found is section (F)(1) of SI 01120.200 (emphasis added is mine):
"If the trustee of a trust which is not a resource for SSI purposes purchases and holds title to a house as a home for the beneficiary, the house would not be a resource to the beneficiary. It would also not be a resource if the beneficiary moved from the house. The trust holds legal title to the house, therefore, the eligible individual would be considered to be living in his or her own home based on having an "equitable ownership under a trust.""
While the above certainly seems to indicate that a house owned by (titled to) a third-party SNT (which is not a resource to the beneficiary) is not a resource to the beneficiary even if they have moved from that house, it doesn't make it clear if the same applies for multiple houses held by the SNT (none of which are the primary residence of the beneficiary).
ANY insight whatsoever that any of you could provide on those two questions would be GREATLY appreciated!
Thanks!
